Analysis of factors hindering labor productivity in large-scale high-rise building construction projects

Thailand faces persistent challenges in its labor market, notably low and declining labor productivity, labor shortages, and skill mismatches in the construction sector. Over the past decade, national development has focused more on capital investment and labor quantity than on productivity improvement. This study aims to address this gap by developing and validating a Structural Equation Model (SEM) to examine relationships among key labor productivity indicators in Thailand’s construction industry, particularly large-scale high-rise projects. Data were collected from 600 construction workers employed in residential projects across Bangkok and surrounding provinces, representing a population of 1,125,400 workers (2013–2019). The SEM incorporated nine latent constructs: Materials, Equipment/Tools, Labor, Safety, Construction Methods, Rework, Weather, Motivation, and Productivity that capture both resource-related and human-factor dimensions. The validated model demonstrated a good fit with empirical data, with all observed variable correlations significant at the 0.05 level. Motivation was identified as the most influential factor on labor productivity (total effect = 0.680), followed by Equipment/Tool performance (0.483), Labor Management (−0.049), and Resource Management/Working Conditions (−0.066). Collectively, these factors explained 92.7% of the variance in productivity. Indirect effects through Motivation accounted for 51.7% of its variation. Findings underscore the crucial role of worker motivation in improving productivity. Housing support had the most substantial positive influence on Motivation, explaining 75.7% of its variance. Construction managers should prioritize motivational strategies, particularly housing support, project-end bonuses, and social insurance, to enhance workforce satisfaction and productivity in Thailand’s construction sector.